The Islamic bank. There are two basic

The
operation of savings deposit accounts vary at different banks. In Islamic bank,
all the banks are operating savings deposit account. However, saving deposit
allows customers to put and withdraw their saving money at any time and it does
not require any minimum balance in the deposit account. This saving account
does not have maturity date, therefore the cash can be withdrawn at any time
based on the customer’s demand. Furthermore, Islamic financial institution
structure their saving deposit account according to sharia principle, I form of
qard, wadiah yad dhamanah or Mudarabah saving deposit. Wadiah yad Dhamanah is
mean by savings or deposits with guarantee. It means to goods or deposits
assigned to the care of a person, who is not the owner, for safekeeping. While,
Mudarabah saving deposit is based on the Mudarabah concept which earn profits
based on the customer account balance. Deposit in Arabic is called as wadiah.
The term wadiah is from the verb wada’a, which means to leave or deposit. In
Islamic finance, wadiah refers to the assets or deposit funds by a person with
an Islamic bank. There are two basic types of wadiah which includes Wadiah yad
amanah and Wadiah yad Dhamanah. Wadiah yad amanah is refer to safe custody
based on trust. Originally the term of deposit is amanah(trust) where it is
charitable and divinely rewarded. The difference between the savings deposit
for Islamic CIMB Bank and savings deposit CIMB Bank are savings account for
CIMB Bank is up to 1% additional bonus from your saving amount. For Islamic
CIMB Bank saving deposits which use the method of “Principal amount x
Prevailing Rate x 1/365 days).

Current
deposit is where the offers users safe keeping of their cash deposit, and the
choice to be paid in full upon demand. Generally, current account deposit
facilities are offered either companies or individuals. It may allow customers
to withdrawn at any time. The difference between current deposit and saving
deposit is the presence of cheque book and multi-functional card used in the
former. If the account holders withdraw more than what is sufficient in their
balance, there will be no charge. There are three common structures of current
deposit in Islamic financial are Qard, wadiah yad dhamanah and mudarabah
current deposit. The difference between Islamic CIMB Bank current deposits and
CIMB Bank current deposit are the profit for current account with withholding
tax, wherever applicable, at the prescribed rate shall be deducted for all
interest payments. For current account-I, the profit shall be calculated in the
following manner which is (Principal Amount x Prevailing Rate x 1/365 days).

The
difference between current account and saving account are the customers in the Islamic
bank and Commercial Bank withdraw their money at any time but the commercial
bank is only allows the clients to withdraw their money which is more than  what is sufficient in their amount. Basically,
if the clients withdraw additional amount, then it will be charged but this
does not exist in the Islamic bank. Besides, commercial bank will provide
usurious rate of interest for the clients on the current account, while it does
not give anything to the clients for Islamic bank but it might take a simple
versus expenses to save this money. The Islamic bank deposits has governed by
Islamic law through the Committee of legitimacy, so only Halal can be
conducted, while the commercial banks do not bother usury provisions of the
law. Moreover, there is a difference in the returns achieved by the clients to
open current account between Islamic Bank and Commercial Bank, in the Islamic
bank does not achieve Light current account. Light current account is referring
to the deposit upon demand but to save money and facilitate business dealings
without getting any return on profit.

            The recommendation for saving deposits and current
deposits are boosting sukuk. Lenders are able to offer a wide range of products
such as microinsurance, advisory services and microsavings. The bank may also
hire more people for their business, which will be labour intensive and require
a different kind of skill set. Besides, while acknowledging the risks, bank
needs to develop and will put in place a framework to manage defaults. The microfinance
business will develop in stages starting at the higher end. Because there is a
potential in microfinance because Islamic banks have focus on bigger corporates
and have not much paid much attention in this area. Therefore, if the checks
are in the right place, there will be no problem for microfinance to see strong
growth.